EconomyHotels

Manchester and Salford room supply to increase 20% by 2020

This is expected to balance supply and demand in these areas

Supply and demand in hotel rooms in Manchester and Salford is set to be more balanced with an additional 2,713 rooms due for delivery in the next two years, according to international real estate advisor Savills.

If the full 2018-20 pipeline is delivered, the firm says it will increase total hotel room supply by 20%.

Savills reports that the last decade saw a high level of applications for new hotels in Manchester and Salford though the actual delivery of rooms was comparatively restrained until recently, when 874 rooms were added to supply in 2017.

While revenue per available room (RevPAR) increased by an above average 5.7% in 2016, it grew by only 0.4% in the year to September 2017 as more rooms entered the market.

This puts Manchester at the lower end of the UK city rankings but indicates that supply of and demand for rooms is in balance.

Savills also reports that although some European and global cities have either experienced or speculated that the growth of alternative accommodations such as Airbnb will challenge the hotel sector, this is less true in the UK and specifically in Manchester.

While Airbnb rentals in Paris account for nearly 2.5% of the total residential stock in the city, in Manchester and London they are 0.4% and 0.8% respectively.

Tom Cunningham, hotels director at Savills Manchester, said: “In the next two years, the biggest gain in room numbers will be in the four-star segment and the greatest percentage increase will be in the serviced apartment market.

“This pipeline, combined with modest increases in demand and performance, is probably all that the city needs to satisfy demand and maintain viability for the immediate future.”

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Shekina Tuahene

Shekina is a multimedia journalist who has lived in London all her life. She is an alumnus of University of Greenwich and Brunel. Shekina loves to read, travel, socialise and listen to music. If you have any story or feature ideas, feel free to drop her a line.

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